CHART OF THE DAY: The Simple Reason Stocks Have Had Such An Incredible Two Years

button more charts
button chart prev
button chart next

Today is the 2-year anniversary of the March, 2009 bottom.

Why have stocks been on such a monster tear since then?

It’s not that complicated, really.

The v-shaped recovery in equities is closely echoed by the v-shaped recovery in earnings, as this chart from Citi’s Tobias Levkovich confirms. If earnings continue on their current trajectory, or something close to it, watch for stocks to follow.

chart of the day, s&p 500, eps, march 2011

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at